Canada crude-Heavy grades steady in thin trade

January 21, 2014|Reuters

CALGARY, Alberta, Jan 21 (Reuters) - Canadian heavy crudeprices were steady on Tuesday, with trading volumes very thinfollowing the close of the January trading window.

Western Canada Select heavy blend for February delivery lasttraded at $18.75 per barrel below the West Texas Intermediatebenchmark, according to Shorcan Energy brokers, unchanged fromMonday's settlement price.

WCS for March delivery changed hands at $18.50 per barrelbelow the benchmark.

The Canadian crude market is currently outside the nearlythree-week-long trading "window" - between the first of themonth until the day before pipeline nominations are due - whenthe bulk of market activity takes place.

Traders were awaiting news on whether Enbridge Inc,whose pipelines carry the bulk of Canadian crude exports to theUnited States, would ration more space on its network inFebruary.

Kinder Morgan Energy Partners LP said crude oilnominations on its 300,000 barrel per day Trans Mountainpipeline between Alberta and the Pacific Coast areoversubscribed by 70 percent next month.

High apportionment of pipeline capacity can drive Canadiancrude prices lower on concerns production will get bottleneckedin Alberta.